Unabsorbed capital losses can be carried forward up to 8 years; long-term losses only offset long-term gains.

Unabsorbed capital losses from capital gains can be carried forward to subsequent tax years and set off according to specific provisions. Long-term capital losses can only be set off against gains from other long-term capital assets, while short-term capital losses can be set off against gains from any capital asset. These losses can be carried forward for up to eight tax years following the year they were initially computed. An "unabsorbed capital loss" refers to a loss under the "Capital gains" category that has not been fully set off in the tax year it was incurred.